[Gasification] Fwd: Cost of feasibility study

[mmbtupr at aol.com]

           To Gasification List       from   Lewis L Smith
 
 
   Addresses should have included our List. My mistake. Apologies.
 
-----Original Message-----
From: MMBTUPR at aol.com
To: philippe.malon at club-internet.fr
Sent: Wed, 16 Aug 2006 2:29 AM
Subject: Re: [Gasification] Cost of feasibility study


          to   Gasification List                    from  Lewis L Smith

The cost of a project appraisal [also known as "feasibility study" and by other names] can very a lot, depending on factors such as the following ---

•      The complicatedness and type of the project, especially the number of inputs, outputs and process stages.

•     The scope of the appraisal. For example, are market studies required for all outputs ? Has a preliminary commitment for financing been obtained or is a survey of financing sources required ?  Are soil borings and/or other physical tests of the site required ? How much site engineering of equipment and machinery is required ?  [Most of these items are frequently omitted, but not always.]

•     The amount and availability of accurate data needed to make the appraisal.

•     Who does the appraisal. [A big US engineering firm once did a biomass-energy project appraisal in the Caribbean for $1.0 million which I could have done with good Caribbean crew for $600,000 !!! Fancy per diem rates for outside "experts" can chew up a lot of money fast.]

Cordially. End of message. 
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